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IE673Session 5 - Process Management4 Definition of Terms System Boundary - Describes system under study Outputs - End product of system Customers - Users of the outputs Mission - Purpose for the system’s existence Vision - The desired future outcomes of the system Values - The principles desirable to guide behavior

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IE673Session 5 - Process Management5 Definition of Terms Output Measures - Observable characteristics which indicate how well the system outputs satisfy customers Inputs - Materials, information, etc. that must be put into the system to produce outputs Suppliers - People who provide inputs Feedback Loops - Connections to provide meaningful information upstream

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IE673Session 5 - Process Management7 Identification of Key Processes Which process has the most problems, customer complaints? Which process consumes the most resources? What do people in system complain about most? Which processes have recurring problems? Which processes have high variability? Which supporting processes are weak or taken for granted? Which processes would have the greatest positive impact if improved? Which processes will be important in the future?

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IE673Session 5 - Process Management8 Key Process Planning Sheet System Under Study: Key Process: Reason for selecting as a key process: What is desired for this key process? Who should be involved in analyzing this process? –Who owns the process? –Who will be affected by changes to this process? –Who is required to approve changes? –Who is most knowledgeable? Process Improvement Team:

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IE673Session 5 - Process Management9 State Change Flowchart “State Change” - a physical change in the dimensions or properties of the input Purpose - To define the ideal process as a series of changes to convert the input to the output Construction Steps: –Label the process being flowcharted –List the outputs of the process at the top –List the output at the bottom –Describe each physical state in between

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IE673Session 5 - Process Management17 Improvement Aim for the ideal Ask –How can the process be changed to reduce error and rework? –How can people upstream be linked to people downstream? –How can the process be made more visible to everyone involved? –How can the “people” process be improved? –How can process interruptions be eliminated?

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IE673Session 5 - Process Management20 Benefits vs. Cost/Risk How will quality or performance be improved? What wastes will be eliminated? How have cycle times improved? How will frustration be reduced/motivation enhanced? Cost of new machines, tools Cost of more people Cost of change How will cost/productivity suffer during transition? What happens if it doesn’t work? How will improvement be measured?